Jenny Inc. has the following projected costs for the second quarter of 20YY:Projected CostsExpensesApril MayJuneSelling and marketing expenses (i)$200,000$250,000$300,000Office Insurance expense (ii)800800800Office depreciation expense500500500Property tax expense (iii)700700700Jenny’s payment policy for selling and administrative expenses is as follows:Of the selling and marketing expenses, 50% is paid in the month they are incurred; the remaining 50% to be paid in the following month. The selling and admin expense payable at the end of March was $70,000, which represents 50% of March’s selling expenses.Insurance expense is $800 a month; however, the insurance is paid quarterly in the first month of each quarter, (i.e., in January, April, July, and October).Property taxes are paid once a year in December.The cash payments for selling and admin expenses projected in the month of April are:Group of answer choicesNone of the above$202,000$172,400$204,400

In April, the anticipated total cash payments for selling and administrative expenses are set at…

Answered: Jenny Inc. has the following projected…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Jenny Inc. has the following projected costs for the second quarter of 20YY:

Projected Costs

Expenses	April	May	June
Selling and marketing expenses (i)	$200,000	$250,000	$300,000
Office Insurance expense (ii)	800	800	800
Office depreciation expense	500	500	500
Property tax expense (iii)	700	700	700

Jenny’s payment policy for selling and administrative expenses is as follows:

Of the selling and marketing expenses, 50% is paid in the month they are incurred; the remaining 50% to be paid in the following month. The selling and admin expense payable at the end of March was $70,000, which represents 50% of March’s selling expenses.
Insurance expense is $800 a month; however, the insurance is paid quarterly in the first month of each quarter, (i.e., in January, April, July, and October).
Property taxes are paid once a year in December.

The cash payments for selling and admin expenses projected in the month of April are:

Group of answer choices

None of the above

$202,000

$172,400

$204,400

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